New guidance published for minimum energy efficiency standards

The government has recently published guidance for landlords on new regulations that will prohibit the letting of buildings that fail to meet minimum energy efficiency standards.

The Minimum Energy Efficiency Standards (MEES) come into force in April next year and mean that all properties that fall below an EPC rating of E will become impossible to market unless upgraded to meet the minimum standards.

With just over a year until the rules are introduced, the Department of Business, Energy and Industrial Strategy (BEIS) has clarified further how the regulations will be implemented.

The guidance stated that subject to certain requirements and exemptions from 1st April 2018 landlords of non-domestic private rented properties may not start a tenancy with new, or existing tenants if their property has an EPC rating in band F or G.

From 1st April 2023, landlords will be prohibited to continue letting any non-domestic property which is already let if their property has an EPC rating lower than band E.

With some estimates suggesting the regulations could impact 20% of UK commercial property it is important that landlords act now to ensure that their properties are compliant.

The energy performance clock is ticking for landlords

Forthcoming regulations will forbid the letting of commercial buildings below a minimum energy performance rating after 2018. Adrian Gladstone, partner and building consultant in our Bristol office, discusses the upcoming regulations and considers the potential impact for commercial landlords and possible ways forward in improving the energy performance.
“Figures suggest that 18% of commercial properties in the UK currently have an EPC rating of F or G, and a further 20% have a rating of E. Under the 2018 Energy Performance Certificate (EPC) Minimum Standards Regulations, landlords will only be able to let properties if they have achieved a minimum EPC rating band of E, or ‘Minimum Energy Performance Standard’ (MEPS).

Forthcoming regulations will forbid the letting of commercial buildings below a minimum energy performance rating after 2018. Adrian Gladstone, partner and building consultant in our Bristol office, discusses the upcoming regulations and considers the potential impact for commercial landlords and possible ways forward in improving the energy performance.

“Figures suggest that 18% of commercial properties in the UK currently have an EPC rating of F or G, and a further 20% have a rating of E. Under the 2018 Energy Performance Certificate (EPC) Minimum Standards Regulations, landlords will only be able to let properties if they have achieved a minimum EPC rating band of E, or ‘Minimum Energy Performance Standard’ (MEPS).

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“The new regulations will have significant implications for landlords and occupiers who wish to assign or sub-let space. Most notably, it will be impossible to market properties with F and G ratings unless they are upgraded to meet the minimum standards. Property and rental values could also be negatively affected.

“The level of penalty has not yet been disclosed but is likely to reflect the rateable value of the property, with fines in the region of £5,000 to £150,000, depending on the length of the non-compliance and the rateable value of the property. There will also be a penalty of £5,000 for providing false or misleading information to the exemptions register.

“Landlords need to identify any properties they own which fall below the EPC rating and complete works to raise the energy standard. Works do not necessarily mean expensive energy-efficient upgrades. In some cases, minor alterations, such as refurbishing the external fabric of the building as part of normal cyclical maintenance, could upgrade the rating.

With just over one year until the regulation comes into force, landlords should contact a building consultant to ensure they’re compliant.”

Our building surveying team will give you a detailed understanding of the condition of the property you are planning to buy, or rent, or already own.

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We provide several different types of building surveys, (each of which can be tailored to suit your requirements) including:

Pre-acquisition surveys – an analysis and quantification of potential risks to the building you are about to purchase or rent

Technical due diligence – a detailed technical analysis of the property you about to purchase or rent, currently own or rent, including full ananlysis of any related legal, statutory and construction documents;

Pre-divestment surveys – an analysis of the existing building you are about to dispose of, which may be transferred to any purchaser that acts to speed up your property sale

When looking for a new property, a building survey will ensure you know of any defects to the building before entering into a contract and the costs of remedying any disrepair.

Working with us also allows you to plan ahead, taking into account any extra costs that may be require allocating to satisfy any key defects, repairing liabilities, legal or regulatory obligations and give you long term knowledge on the costs of the property’s maintenance during your ownership.

To find out which survey best suits you and your property, please get in touch.

Environmental & Sustainability Consultancy

As qualified EPC assessors we will ensure that we prepare and produce your EPC in the shortest possible time to allow your building’s sale or letting may be arranged swiftly.
Under the Energy Act and the Energy Efficiency Regulations it will soon be illegal to offer new lettings on premises with an EPC rating of F or lower. We can offer advice on not only the current energy rating, but strategy as to how any properties that do not meet that benchmark may be improved to provide a minimum EPC rating of E and therefore maintain the ability to continue letting the property. Having expert knowledge of the EPC calculations our EPC assessors can also advise on cost effective solutions in order to achieve this.
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As qualified EPC assessors we will ensure that we prepare and produce your EPC in the shortest possible time to allow your building’s sale or letting may be arranged swiftly.

Under the Energy Act and the Energy Efficiency Regulations it will soon be illegal to offer new lettings on premises with an EPC rating of F or lower. We can offer advice on not only the current energy rating, but strategy as to how any properties that do not meet that benchmark may be improved to provide a minimum EPC rating of E and therefore maintain the ability to continue letting the property. Having expert knowledge of the EPC calculations our EPC assessors can also advise on cost effective solutions in order to achieve this.